Cryptomining, as it is being called, is the process that refers to getting cryptocurrency as payment for the work completed. It is the transaction in which cryptocurrencies are verified and contributed to the blockchain digital ledger. It can also be called bitcoin mining, altcoin mining. Bitcoin mining is the most approved in mining.
Mining is responsible for adding new coins to the already circulating supply and made it easy for crypto to work as a peer-to-peer network completely decentralized (no third-party involvement). Mining has helped in getting an extra source of income or gain financial freedom. This has made the activity of cryptocurrency an explosive increase.
How does it work?
The people that mine cryptocurrency is called cryptominers or miners for short. They work by confirming that transactions are legitimate and earn a reward in cryptocurrency. To understand how this works more, we need to understand the processes and technology behind it.Cryptominers compete to solve complex mathematical problems using high-performance computers. Once they complete the problem, they verify the information and add the data to the blockchain ledger.
The moment miners have confirmed 1 megabyte of Bitcoin transactions, which can be called a block, they are ready to be paid with bitcoin. Not everyone who verifies transactions is paid as 1 MB transactions worth confirms eligibility for reward, and the number of transactions needed to reach 1 MB can be one or up to thousands depending on the number of data a transaction takes up.
Is crypto mining profitable?
Profiting from mining cryptocurrency can vary from each coin. The cost for mining too has to be considered, from hardware cost of devices to electricity and the location from which you are mining. Bitcoin has a half-life of about four years, which can be seen in the reward system from when the first bitcoin was mined in 2009. The reward for mining was 50 BTC which is significantly higher than what today's reward is due to the half-life, which is 6.25 BTC. This is still high due to the price increase of Bitcoin, which can be invested in a company like Bitcoin Prime to get more interest and reward on your mined coin.
Getting started as a crypto miner
To start mining crypto, you have first to have an interest in cryptocurrency and solve mathematical problems; this is the first thing needed. Aside from the interest, it would help if you had a high-performance computer in a good location. Miners can create a wallet and join a mining pool. Mining pools help because it calls for collaboration and a lot more resources than any individual can have.
Top coins to mine
- Rave coin: Ravecoin wants to create a blockchain efficient in asset transfer from one person to another. The coin was launched on 3rd January 2018 and used the X16R algorithm for mining. It has a mining reward of 5000RVN.
- Monero: Ranked as the 14th coin in the market, Monero is a good coin to mine. It uses a random hash function. The mining rig is easy to set up as you can acquire the hardware with the wallet and configure it.
- Litecoin: This is a peer-to-peer cryptocurrency, in a way identical to bitcoin. It's a robust coin, and with less volatility than other coins and high speed with a lower transaction fee, Litecoin is good to mine. With a price of $359.08, Litecoin offers 12.5 LTC for mining.
Cryptocurrency mining is an alternative ay to financial freedom but not without its risks. We would recommend that you understand the framework and technology better before you decide to start mining. The risk of you ending up with a loss is possible, so we suggest you weigh your options well.
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